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2018 (8) TMI 1272 - CESTAT HYDERABADMethod of valuation - manufacture of transformers as well as their installation on a turnkey basis - Captive consumption in execution of contract - It is alleged that there is a clear sale price of the transformers and they should accordingly be valued as per Section 4(1)(a) of the Central Excise Act based on the transaction value and not under Rule 8 of Central Excise Valuation Rules, 2000 - Held that:- The Learned Commissioner was correct in holding that there was an indivisible turnkey contract for supply of transformers, other materials and also installation and commissioning of the same. The cost of the materials has been given in the schedule but it includes not only the cost of the transformer manufactured by them but also other bought out items as explained by the Learned Counsel for the respondent herein and also as recorded in the draft audit report by the Central Excise Department themselves. The entire amount cannot be considered as the cost of transformer sold to M/s APSPDCL. The correct way of assessing the value of transformer, in such a case, is treating the same as captively consumed by the respondent in executing the contract given to them by M/s APSPDCL. Appeal dismissed - decided against Revenue.
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